Clearwire Facing Lawsuit over Advertising and Early Termination Fees

Published on: 22nd Apr 2009

Note -- this news article is more than a year old.

A legal action has been filed against US based WiMAX operator Clearwire seeking certification of a class action on behalf of Clearwire subscribers. The lawsuit is alleging that Clearwire is misrepresenting the quality of its WiMAX network and then imposing early termination fees if a customer is unable to secure a reliable service.

The complaint alleges that the Early Termination Fee constitutes an unlawful
penalty, stymies competition, and is otherwise void and unenforceable.

The complaint also alleges that Clearwire engages in false advertising of its
internet and telephone services. Although Clearwire advertises its internet
service offering as a reliable, comparable, and "always-on"
alternative to cable internet or DSL, the complaint alleges that Clearwire's
internet service is actually far inferior to cable internet and DSL, as
consumers frequently experienced service disruptions, including dial-up speeds
and lack of service entirely.

The plaintiffs who have brought the lawsuit are from various states in which
Clearwire offers service, including Washington, Hawaii, Minnesota, and North
Carolina. They seek recovery of any Early Termination Fees paid by Clearwire
subscribers, as well as an injunction prohibiting Clearwire from enforcing the
Early Termination Fees and from further false advertising.

The lawsuit is captioned Minnick et al. v. Clearwire US, LLC, and was filed
in King County, Washington. Plaintiffs are represented by the Washington, D.C.
law firm of Tycko & Zavareei LLP and the Seattle, Washington law firm of
Peterson Young Putra.

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